Property

Market on tenterhooks: ANZ

Low levels of property market activity and rising interest rates are combining to create less intense house price inflation, ANZ’s economists say.

Wednesday, July 23rd 2014

“The number of house sales continues to track lower, with declines in six of the past eight months, to be 17% lower since October,” they write in the bank’s latest Property Focus report.

They said while price inflation still looked robust, there had been a small decline over the past quarter.

But they say rising immigration, the improving labour market and the still-low levels of housing available for sale are providing support for the market.

Rising mortgage rates had made housing more unaffordable, although banks’ two-year specials had dampened the impact of hikes to the Official Cash Rate, the economists said.

Of the ten gauges the economists use to assess the market and look for signs of future price movements, only migration is pointing purely up.

Affordability is flat or declining as softer house prices help to improve affordability, and mortgage rates decrease it.

The supply/demand balance is flat or pushing prices up, as the gap between the two continues to increase.

House sales were flat or pointing to a decline in prices as the number of sales dropped and the average days to sell increased.

Housing supply is tepid, the report said, and flat or pushing prices up. “On a quarterly basis, listings have inched up to a two-year high.”

Median rents were also flat or pointing up for prices. “Median rents were unchanged over the first six months of the year but the bias looks up,” the report said.

On balance, the report’s authors said the market was on tenterhooks. “Has the property market porridge cooled enough for RBNZilocks?”

 

Comments

No comments yet

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.